ConocoPhillips (NYSE: COP) today announced it has entered into an
agreement to sell two ConocoPhillips United Kingdom (U.K.) subsidiaries
to Chrysaor E&P Limited for $2.675 billion, plus interest and customary
adjustments. Together, the subsidiaries indirectly hold the company’s
exploration and production assets in the U.K., as well as associated
decommissioning liabilities. ConocoPhillips will retain its London-based
commercial trading business and its 40.25 percent interest in and
operatorship of the Teesside oil terminal. Proceeds from this
transaction will be used for general corporate purposes.
“We are extremely proud of the legacy we’ve built in the U.K. over the
last 50 years and are pleased that Chrysaor recognizes the value of this
business,” said Ryan Lance, chairman and chief executive officer. “This
disposition is part of our ongoing effort to hone our portfolio and
focus our investments across future low cost of supply opportunities.”
Full-year 2018 production and year-end 2018 proved reserves associated
with the U.K. assets being sold were approximately 72 thousand barrels
of oil equivalent per day (MBOED) and approximately 99 million barrels
of oil equivalent (BOE), respectively.
The effective date for the transaction will be Jan. 1, 2018. The
transaction is subject to regulatory approval and other specific
conditions precedent. The sale is expected to be completed in the second
half of 2019.
The company has posted an investor table that summarizes the impact of
this transaction. The table can be accessed at www.conocophillips.com/investor.
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About ConocoPhillips
ConocoPhillips is the world’s largest independent E&P company based on
production and proved reserves. Headquartered in Houston, Texas,
ConocoPhillips had operations and activities in 16 countries, $70
billion of total assets, and approximately 10,800 employees as of Dec.
31, 2018. Production excluding Libya averaged 1,242 MBOED in 2018, and
proved reserves were 5.3 billion BOE as of Dec. 31, 2018. For more
information, go to www.conocophillips.com.
CAUTIONARY STATEMENT FOR THE PURPOSES OF THE
"SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995
This news release contains forward-looking statements.
Forward-looking statements relate to future events and anticipated
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track," "target" and other similar words. However, the absence of these
words does not mean that the statements are not forward-looking. Where,
in any forward-looking statement, the company expresses an expectation
or belief as to future results, such expectation or belief is expressed
in good faith and believed to have a reasonable basis. However, there
can be no assurance that such expectation or belief will result or be
achieved. The actual results of operations can and will be affected by a
variety of risks and other matters including, but not limited to changes
in commodity prices; changes in expected levels of oil and gas reserves
or production; operating hazards, drilling risks, unsuccessful
exploratory activities; difficulties in developing new products and
manufacturing processes; unexpected cost increases or technical
difficulties in constructing, maintaining, or modifying company
facilities; international monetary conditions and exchange rate
fluctuations; changes in international trade relationships, including
the imposition of trade restrictions or tariffs relating to crude oil,
bitumen, natural gas, LNG, natural gas liquids and any materials or
products (such as aluminum and steel) used in the operation of our
business; our ability to collect payments when due under our settlement
agreement with PDVSA; our ability to collect payments from the
government of Venezuela as ordered by the ICSID; our ability to
liquidate the common stock issued to us by Cenovus Energy Inc. at prices
we deem acceptable, or at all; our ability to complete our announced
dispositions or acquisitions on the timeline currently anticipated, if
at all; the possibility that regulatory approvals for our announced
dispositions or acquisitions will not be received on a timely basis, if
at all, or that such approvals may require modification to the terms of
our announced dispositions, acquisitions or our remaining business;
business disruptions during or following our announced dispositions or
acquisitions, including the diversion of management time and attention;
the ability to deploy net proceeds from our announced dispositions in
the manner and timeframe we currently anticipate, if at all; potential
liability for remedial actions under existing or future environmental
regulations; potential liability resulting from pending or future
litigation; limited access to capital or significantly higher cost of
capital related to illiquidity or uncertainty in the domestic or
international financial markets; and general domestic and international
economic and political conditions; as well as changes in tax,
environmental and other laws applicable to our business. Other factors
that could cause actual results to differ materially from those
described in the forward-looking statements include other economic,
business, competitive and/or regulatory factors affecting our business
generally as set forth in our filings with the Securities and Exchange
Commission. Unless legally required, ConocoPhillips undertakes no
obligation to update publicly any forward-looking statements, whether as
a result of new information, future events or otherwise.
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